Termination of Adventure Clause

The Voyage Termination Clause is a special clause in marine cargo insurance, usually attached to a cargo transportation insurance policy. It means that when the insured cargo's voyage is terminated at a place other than the destination due to a covered peril, the insured may, within a specified period, notify the insurer and pay an additional premium to extend the insurance coverage to that termination place or to the transit to the original destination. It is commonly used in scenarios such as war, strikes, political unrest causing route interruption, or ship seizure or abandonment of voyage. Precautions: the insurer must be notified promptly (usually immediately or within a reasonable period) and an additional premium must be paid; if not notified, the insurance coverage terminates at the time the voyage is terminated. It differs from the 'Change of Voyage Clause', which involves actively changing the destination port, whereas this clause addresses passive termination. It also differs from the 'Warehouse to Warehouse Clause', which is effective throughout normal transportation, while this clause provides continued coverage only upon abnormal termination.